Mind Over Money

Break The Cycle Of Being Financially Poor

schoolThere’s a deadly cycle when it comes to being poor. When you aren’t educated on how to be good with money, your children aren’t going to be educated on how to be good with money. If you are bad with money you need to get better for future generations. The only thing I ever learned growing up was about investing in stocks. I never learned about making a budget and it never occurred to me that I even needed to know because no one ever told me I needed to know. The only thing kids know about personal finance is that you need to work to pay bills. That’s it. You need to break the cycle.

Get An Education

If you don’t know about good money habits, how can you possibly have them? The only way to learn that way, is to make mistakes. That is the long hard road. Take the easier route and learn from other people’s mistakes. Read a book, read blogs online, just learn from people before you make those mistakes. When you learn something be sure to pass it onto your children so they have a lesser chance of making those mistakes as well.

Stop Wanting What Other People Have

“Ooooo my neighbor just got a new 52 inch Hi def  TV. It looks fantastic. I think I’m going to get one. I can get one at Rent-A-Center and make payments for a couple of years.” Don’t! Your neighbor has that because they can afford to buy one or are willing to put their future at risk to own something that looks cool. Don’t be that person that does the latter. You can’t define your life by what you own. If you really do define yourself by what you own, then earn more money so that you can buy what they have instead of ruining your future by paying for it with payments that end up costing you thousands of dollars in interest.

Don’t Spend All Of Your Money

This should be a given but how many people have a lot of money by spending it all? If you live paycheck to paycheck it means you spend it all. Stop doing that! Find places where you can cut back your spending. Find a cheaper place to live, stop eating out, stop spending money everyday. If you can’t do that then start earning more money so that you can put some away for a rainy day.

Having bad financial habits will most likely cause your children to have the same habits. Change your habits before it becomes too late and the cycle is started over again. On your journey to become financially independent bring your kids for the ride. Break the cycle of being financially poor.

Do you have any habits you don’t want your kids to have? Why do you have those habits if you don’t want your kids to have them?

Money Management

Does Saving Excite You?

It’s not a question that you often hear asked but there is no denying its positive value especially for those who are concerned about their future; so we ask, does saving excite you? Are you one of those people looking to prepare for the rainy days? If your answer to these questions is “yes”, then perhaps it is time for you to choose a cash ISA account. 

For those who are wondering, a cash ISA is much like most savings accounts offered by banks. It offers a great way to stash away a fraction of your earnings and convert it into savings. It is not uncommon for many people today to head to the bank to open a savings account and in fact, the truly savvy maintain multiple savings accounts in many banks and for various purposes. 

If indeed, you are excited with the concept of saving, then you would be pleased to know that a cash ISA takes the idea of savings to a whole new level. This is because compared to a traditional savings account, a cash ISA carries a lot of advantages. Consider the following short list of positive benefits that you can expect from cash ISA: 

  • Tax advantages. A normal savings account is taxed just like most profits. In many cases, it is levied a capital gains tax which eats into the profit itself. This is not the case with cash individual savings accounts; by law, cash ISAs are not taxed during the holding period or during withdrawal. This maximizes the profit that you can expect to draw out of each investment.
  • Cash ISAs are convertible to stock ISAs should one choose to do so. This increases the flexibility of the investment and simplifies the process of investing without having to withdraw and personally purchase financial instruments like stocks and shares. With a cash ISA, you can follow through the prescribed conversion process and your host bank takes care of all the processing for you. 

You do not need to be a deeply enamored with the idea of saving to appreciate the value of cash ISAs, although it bears mentioning that being excited with the idea of savings can give you more than ample motivation to take advantage of the benefits of financial instruments like the cash ISA. See how you can incorporate it into your investment goals so you can invest safely, and enjoy the tax benefits that come with cash ISAs. 

Investing

Using Letters of Credit

Letters of credit are used for the purpose of substituting a customer’s credit for that of the banks. This transaction provides the ability to facilitate a trade. Letters of credit are often used for international trading, where a seller lives in one country and the buyer lives in another. There are essentially two types of letters of credit – the commercial letters of credit and the standby letters of credit. The primary payment used for a transaction is the commercial letters of credit and the standby letters of credit are considered as the secondary payment option.

Commercial Letters of Credit 

A commercial letter of credit has been used for hundreds of years as a way to facilitate payments for international trading. As the global economy is continuing to evolve, the letters of credit will continue to be used. 

The governing agency of commercial letters of credit is the International Chamber of Commerce Uniform Customs. The provisions and definitions of the documents are binding for all parties that are involved in the transaction. 

The document is a contract agreement between the bank that issues it and one of their customers. The letter of credit authorises the confirming bank to make the payment. A customer will request that the issuing bank open the letter of credit and the bank will commit to honour the drawings that are made through the credit. Typically, the provider of the service or goods will be the beneficiary. Simply put, the issuing bank is replacing their customer as the payer. Letters of credit act as a guarantee for suppliersand an international finance corporationcan routinely issue these.

Letter of Credit Elements 

1. Issuing bank undertakes a payment on behalf of the applicant in order to pay the seller a set amount of money

2. If specified, documents that represent the goods that are supplied are presented within the specified time frame

3. Documents have to meet the terms and conditions as set out in the letter of credit document

4. The documents have to be presented in a place that is specified. 

Beneficiary 

If the beneficiary provides the necessary documents as evidence as stated in the letters of credit, he/she is entitled to payment. Letters of credit are distinct and separate documents from the sales contract that it is based on. The parties will deal with documents and not with goods and the issuing bank cannot be held liable for the contract that has been set between the customer and the beneficiary. The obligation of the bank is to inspect the documents in order toensure that they meet the terms and conditions that were set for the credit. If the bank finds that the conditions have been met it will issue the payment as directed.

Characteristics of the Letter of Credit 

Typically a letter of credit will be negotiable. The bank that issues the letter will be obligated to pay the beneficiary, as well as the bank that is nominated by the beneficiary. The instrument can be passed between parties in the same manner as money exchanging hands. In order for the letter to be negotiable there will need to be a clause that states there is an unconditional promise to make a payment on demand or within a specified time. 

When creating a letter of credit the parties may choose to make it irrevocable or revocable. Revocable letters can be changed at any time for any reason, without notification from the issuing bank. This type of letter may not be confirmed. 

If the letter is irrevocable it cannot be changed unless all parties agree. This type of letter is insurance for the beneficiary, stating that if the correct documents are presented payment will be made. 

Employment

Broadening your Recruitment Horizons

Everyone is looking for new opportunity. Confidence is returning into the psyche and that is being reflected in the investment that many companies are planning. If you are experienced in parts of the recruitment business you may think this is a chance to broaden your horizons and take advantage of the predicted growth in employment opportunities.

Perhaps you have worked in very specialised recruitment such as head hunting senior executives for a client, you may have found that although there is a significant reward for identifying a suitable person to fill an important vacancy in a company, it is something that is limiting your talents.

recruitment

Broader approach

The whole recruitment business is a much broader sector. Some agencies specialise in particular sectors such as nursing, secretarial or accounting, others have broadened their approach because of the varying demands of their clients. If you feel you would like to diversify from merely head hunting and begin the process of starting a recruitment business you need to explore the whole sector; exploration at one level has become so much easier with the Internet responding to any researcher by providing more information.

Research

You can gather information but you should actually also talk to specialists that provide advice and services relating to the recruitment business and see if there is scope for a business relationship. There are a number of ways that using recruitment business by Simplicity methods can help you with the detail you may not have dealt with before. It is an altogether different process running a company than acting as a consultant sourcing very senior staff by identifying and sounding out suitable candidates.

What you need to do is to build your brand and find clients. Many people are using social media to get their message across and that may be an alien concept to you. There are service companies that can help you on a number of fronts within recruitment.

The daily tasks

You need to get your internal systems in place and know that your cash flow planning allows you to meet your liabilities. However, your own time needs to be spent getting in front of people and developing the business. Why then not get help with some of the things that may be regarded as mundane but are nevertheless essential?

Any company has statutory responsibilities and a business that is involved in the labour sector certainly needs to have an efficient payroll system so that everyone is paid on time and HMRC is happy. There are only so many hours in the day and it is important that you use them productively. If the best way to do that is to get expertise to help, then that is the route to take. 

Image attributed to Freedigitalphotos.net Ambro

Investing

Financial market trading can save you from being poor

Since the financial market trading became open to individuals, nobody should complain about being poor or not having a source of income. The top financial advisors at Wilkins Finance confirms that it is a very promising investment front, even to those who think they are poor and they cannot get any decent job to sustain their bills.

Financial market trading is the ultimate solution to being poor. It has great rewards despite the risks involved. In actual sense, some of the richest people in the world have investments in the financial markets trading.

No academic qualifications are required

Firstly, to invest in the financial markets, you don’t have to have any academic qualification. Financial markets trading is not a formal employment and you will not have a boss who is always at your neck to make sure that you have done your job as stipulated and at times even quarrelling you for nothing, just because he/she woke up on a wrong foot. In financial markets trading, you actually become the boss.

Even the poorest academician can invest in the financial markets trading. There is absolutely nowhere you will be required to provide your academic qualifications or have to attend an interview for you to be allowed to start trading. The only thing that will be required of you is probably your proof of residence when you are registering with your broker and this is all for the security of your funds. And this is just because the broker will need the exact information to avoid other people from accessing your account and withdrawing your funds.

Actually, nowadays you even don’t have to know how to analyse the markets. You can use the services of managed account or even choose to use automated trading. And even if you decide to trade on your own there are always trading tools like the technical indicators which you can use for your aid to analyse the markets or even sign up with a signal provider to provide you with trading signals.

You trade from where you feel comfortable trading

Another interesting thing with financial market trading is that you will never have to catch a bus or trading every morning to go to your place of work. You don’t need to burn the fare every morning. You can actually wake up take your simple breakfast and start trading from the comfort of your bed.

You don’t have to have a modern office to become successful in trading. No! All you need is a computer or a smartphone if you cannot afford a computer and an internet connection. Actually, you can go to the public library if you cannot afford a laptop or a smartphone or even to subscribe to an internet connection. You can use the services of the public library (internet and computers) and once you have earned a few coins, you can go ahead and purchase your own computer or smartphone and subscribe for an internet connection so that you can enjoy the comfort of your home when trading.

You don’t have to be rich to start trading

There is a common misconception that trading is for the select few. Those who own billions in their bank account. But that is not true!

The only thing that you will have to do is to get a broker who allows a very minimum initial deposit and make sure they are regulated to ensure that your funds are safe. It is not like in the early days when financial market trading was for the elite few and big financial institutions like banks which could afford billions.

Actually, there are brokers who allow even as little as a cent with their cent account. With the cent account, you can deposit even $0.001 which is a cent. So, money is not a limitation o start trading. You can start trading with the little that you have and with good risk management practices, you can earn a decent income from your financial markets analysis. Once you have a good trading strategy and you become disciplined, then you can be guaranteed of making good money trading.